(All Steps) QUESTION: The following data on a merger are given: Firm A price per share $100, total earnings $500, shares outstanding 100, and total value
QUESTION: The following data on a merger are given: Firm A price per share $100, total earnings $500, shares outstanding 100, and total value $10,000. The corresponding figures for firm B are $10, £300, 40, and $400. The total value of the Firm AB is $11,000. Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the postmerger P/E ratio, assuming that cash is used in the acquisition and the merger has no immediate effect on total firm income. (2 decimals)
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![[See Solution] Ms. Newcastle has $60,000 income](/images/solutions/MC-solution-library-77964.jpg "[See Solution] Ms. Newcastle has $60,000 income this year and $40,000")
[See Solution] Ms. Newcastle has $60,000 income this year and $40,000
(Solved) QUESTION: The following data on a merger are given: Firm
![[Solution Library] QUESTION: What was the situation](/images/solutions/MC-solution-library-77966.jpg "[Solution Library] QUESTION: What was the situation that led to Mindtree")
[Solution Library] QUESTION: What was the situation that led to Mindtree
(See Solution) QUESTION: What anti-takeover defences did Mindtree
![[All Steps] Mr. Dell has $100 income](/images/solutions/MC-solution-library-77968.jpg "[All Steps] Mr. Dell has $100 income this year and zero income next")
[All Steps] Mr. Dell has $100 income this year and zero income next
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